For some time now, the CEO of Tesla Motors has been interested in acquiring all of Twitter's common stock. In his most recent proposal, he pledged about $54.20 per share in the company, and the offer could be made official today. To help you stay on top of this big change in the business world, we'll summarize the details of this transaction in this article. Read this text in full and understand more about this news. Good reading!
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Twitter shareholders versus Elon Musk
The news that the businessman would be decided to buy the shares of the social network reached the media and generated great discussion. The main issue is that the other shareholders do not see this purchase with good eyes and have even created barriers to avoid it, such as the poisonous pill. With this project, the idea was to prevent an investor from wanting to obtain more than 15% of the company's shares. If that happened, the board would have to meet to authorize or not the purchase.
Conditions of the agreement between the shareholders
Elon Musk currently owns around 9.2% of Twitter worth $2.89 billion, making him the company's largest single shareholder. Since he declared an interest in larger parts of the company, the board is looking at ways to make that possible on a fair basis. One of the ways out discussed is to include fees in the purchase to protect the company and other shareholders in case of post-agreement withdrawal.
If an agreement was not reached, it was possible that the businessman would give up the purchase and even reconsider his position as a shareholder. This would not be very good for the company's values, and was avoided in the meeting that supposedly took place this Monday.
More updates on the case are expected later in the day.
